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(Inter)national empirical findings repeatedly show that both individual and contextual factors (learning group, school, social space) influence educational opportunities. Equity funding policies might be an effective way to reduce educational inequalities. Following this approach, schools in challenging circumstances can receive additional staff, funding, or further support. However, empirical evidence regarding the extent, configurations, and effects of equity funding schemes is rare, which is particularly true for Germany. Therefore, we (1) systematically analyze the different equity funding policies in K-12 education in German municipalities and federated states, (2) explore sensemaking processes of actors involved in these policies, and (3) analyze the effects of equity funding using a quasi-experimental approach. Our results show great differences between municipalities in terms of equity funding.